Publication

FOR IMMEDIATE RELEASE October 2, 1998

JVC Supplies Encoder System for DIRECTV JAPAN,

Entering Encoder Business with DiviCom

Victor Company of Japan, Limited (JVC) and DiviCom Inc. (Nasdaq: CUBE), a leading provider of compression systems for digital television have agreed with DIRECTV JAPAN MANAGEMENT INC. to supply digital broadcasting encoder systems to DIRECTV JAPAN.

Under the new agreement, JVC and DiviCom will provide DIRECTV JAPAN with: the MediaView MV40, an MPEG2 encoder that generates the highest quality picture in the industry; a Multiplexer system that increases the number of transmission channels per transponder by taking advantage of the DiviTrack statistical function; and ATM network-based transmission systems for communication among broadcasting stations.

DIRECTV JAPAN currently offers 90 channels to its subscribers, and aims to expand the number of channels to 150 by the end of this year. With the new system, JVC and DiviCom are expected to provide full-fledged support for DIRECTV JAPAN.

In light of the rapid digitisation of broadcasting and telecommunications, JVC launched its digital broadcast systems development in November 1996 through a tie-up with U.S.-based C-Cube Microsystems Inc., a digital video-related semiconductor maker and DiviCom Inc., C-Cube’s wholly owned subsidiary and manufacturer of digital video network-related equipment. The tie-up covered development and sales of digital broadcasting systems. The three companies are jointly developing digital broadcast systems as well as system solutions, including high definition picture (HD) encoders, editing systems (Digital S) and receivers (IRD).

In addition to such hardware systems, JVC will invest in new Japanese digital broadcast satellite companies such as formed by the TELEVISION TOKYO network to initiate film and music software business.

With the contract with DIRECTV JAPAN, JVC plans to realign its development, sales and service systems for digital broadcasting system equipment to approach satellite, terrestrial and cable broadcast companies at home and abroad.

DIRECTV JAPAN is extremely pleased to have reached an agreement with DiviCom and JVC to supply the encoder systems for our next phase of channel expansion,” said Bill Johnston, director and vice president, Technology and Operations Division, DIRECTV JAPAN. “During the selection process, our priorities focused on the latest in MPEG-2 technology, DVB-compliance, pricing, delivery, and strong product support. In addition to meeting those requirements, DiviCom and JVC have satisfied these conditions.

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For further information, please contact:

Masayuki Murakami

Public Relations Department

Victor Company of Japan Ltd. (JVC)

Tel: +81 (0)45-450-1489

Fax: +81 (0)45-450-1498

Corporate Profiles

DIRECTV JAPAN MANAGEMENT, INC.

Address: 23rd Floor, Ebisu Garden Place Tower

4-20-3, Ebisu, Shibuya-ku, Tokyo, Japan

Telephone: +81 (0)3-5424-1900

President: Muneaki Masuda

DIRECTV is the world’s leading satellite digital broadcast platform and has acquired over 4 million subscribers in the U.S. and over 380,000 in 12 countries in Latin America. In Japan, DIRECTV JAPAN MANAGEMENT, INC. launched its services in December 1997. Building on the success in the U.S. and Latin America and by offering carefully selected, high-quality programming tailored to the Japanese market, DIRECTV JAPAN is determined to deliver a service that totally satisfies all the needs and wants of Japanese viewers.

DiviCom Inc.

Address: 1708 McCurthy Blvd. Milpitas, CA. USA

Telephone: 1 (408) 499-6700

President: Tom Lookabaugh

DiviCom Inc. develops and integrates products that make digital video networking possible. Products include audio/video encoding, data broadcast solutions, network management systems, consulting and integration systems. DiviCom is a wholly owned subsidiary of C-Cube Microsystems Inc., and both companies are based in Milpitas, Calif.

C-Cube Microsystems Inc.

Address: 1778 McCurthy Blvd. Milpitas, CA. USA

Telephone: 1 (408) 490-8000

President: Alexandre Balkanski

C-Cube Microsystems Inc. is a leading company that develops and markets digital video solutions for the telecommunication and consumer markets. The company is based in Milpitas, Calif., and has offices in North America, Europe and countries in Asia.